Skechers Inc. SKX, + 1.31% is the most popular footwear brand for men and women, according to the latest Amazon AMZN, + 0.06% Best Sellers tracker, compiled by UBS Evidence Lab. It is the third largest footwear brand in the world and UBS analysts believe Skechers’ growth potential is “underestimated.” UBS rates Skechers stock as a purchase with a price target of $ 57.
To win investor confidence, UBS analysts say Skechers needs to achieve organic sales growth in the high single-digit percentage range, increase EBIT margin, and at least meet company earnings per share. street expectations. Last week, Skechers reported first-quarter sales and earnings that beat expectations. Read: Expect ‘Staggering’ Sales Figures From Consumer Businesses As Calendar Beats COVID Closures Y: Amazon Earnings Preview: Prime Day Could Return To Summer After COVID-19 Pushed It Down last year “Skechers’ mission to deliver comfort, style and quality and innovation at a value that resonated with consumers before the onset of the COVID-19 pandemic, and the same is true now,” said David Weinberg, CEO from Skechers, on the earnings call, according to a FactSet transcript. “Consumers are returning to a new normal, one that involves walking more, more comfort at work, and a casual lifestyle mindset.” An NPD report Group published in January found that a “comfort movement” is taking place driven by four factors: “work-from-home (WFH) routines, an emphasis on stress relief, health and wellness efforts, and a casualization. general change that has been taking shape for several years. ” Lots of elastic and flexible waists are two of the characteristics of the trend, but that doesn’t mean it’s just about pajamas and workout gear. Maria Rugolo, a garment industry analyst at NPD, watches behavior change as we emerge from the pandemic. “This is why I hope the lines of offerings and product attributes will blur as all eyes will be watching these comfort-driven categories to see what traits can be infused into other areas of the apparel industry.” wrote. Crocs Inc. CROX, + 17.24%, which posted record first-quarter revenue Tuesday, is also known for its comfort. But with their high-profile collaborations, like Justin Bieber’s, and red carpet appearances, like last Sunday when Questlove wore a pair at the Oscars, the Crocs have also become a fashion item. See: Crocs Benefiting From Stay At Home Change, Collaborations With Justin Bieber And Other Celebrities “We are very encouraged by Croc’s strong start to the year fueled by continued momentum that it is among the healthiest of all the brands we cover” Baird analysts wrote. on a Tuesday note. “We continue to expect Crocs to remain a relative winner given the strong brand momentum demonstrated and a turn to the offensive in product / marketing, and given the recent strong upward revisions to EPS estimates, the stock still looks attractive. at current levels even after a strong run in 2020 and to date in 2021. “Baird rates Crocs stock with a price target of $ 135, up from $ 100. Watch: How the pandemic changed investment habits for different generations. Crocs shares are up nearly 58% year-to-date and have soared 320.4% over the last year. Skechers shares are up 38.2% for 2021 so far and have gained 87.4% in the last 12 months.The S&P 500 SPX Index, -0.11%, is up 11.4% year-to-date.